B2B Brand Management: Questions and Answers

 1. What does "B2B branding" or "industrial branding" mean? Why are they important terms in the business world?

The terms "B2B branding" and "industrial branding" are interchangeable. They both concern how brand management in companies provides products and services to business customers. "B2B" or "business to business" is a more popular term than "industrial branding" and parallels the term "B2C?" (business to consumer). Use of such acronyms is popular in the business world, where saving time and getting to the point are important for busy managers.

B2B brand management is becoming increasingly important for industrial companies; because it enables them to differentiate themselves from competitors by means other than product improvement or price advantage, which are more traditional. Establishing a brand allows global companies to create an emotional investment in the product and to thereby ensure lasting business relationships.

Branding also creates value for the shareholder, not only in terms of better business performance but also for improved share prices.

2. What is your advice to CEOs? who want to build an industrial brand? Could you suggest some tactics?

In our book, we present a methodology to becoming a successful industrial brand. It all starts with the fundamental decision: to brand or not to brand. Many companies have established themselves through great innovation or superior manufacturing capabilities. Today, in the globalized economy, a product must satisfy customer need in order to differentiate itself from the competition. This is where value creation through branding becomes an attractive strategy.

After choosing to brand, there are various elements of brand management to consider. We outline, in particular, brand distinction in the form of brand naming, brand appearance, logo, and so forth. These are crucial for success, as are brand communication and evaluation. We recommend a holistic approach to branding.

Brand acceleration comes next; we offer, in our book, a structural approach and show different examples. We present, for example, a variety of case studies of companies around the world: FedEx, Samsung, IBM, Cemex, Siemens, Lanxess, Lenovo, and Tata Steel. Each company represents a brand challenge that has been successfully met.

In addition to the success stories, we tell also about pitfalls of branding. Branding is a sophisticated marketing tool that companies must learn to use effectively, and there are certain pitfalls to be avoided.

3. Of the companies that use industrial branding, which are considered the most successful?

In the first chapter of B2B Brand Management, there is a graph of highly successful German B2B companies that are listed on the DAX (German stock exchange). Their brand management success enabled them to outperform their peers and increase their stock market value in 2001 more than 30% by 2005. These companies were: BASF, Linde, SAP, RWE, and MAN. We have done the same analysis for the DOW in the U.S.; and the results were even more compelling. Using the Interbrand brand evaluator in the same time span, GE, Caterpillar, and HP outperformed their competition by more than 80% in market capitalization increase. They were better prepared to survive the 2002 stock market crisis and to rebound more quickly.

We know that branding pays; now it is your turn to believe us. Read our book on brand management and learn what we know before your competition does.